Chinese President Xi Jinping emphasized the need for Macao to diversify its economy during the swearing-in ceremony of the new government. The event, commemorating the 25th anniversary of Macao’s handover to China, saw the inauguration of Sam Hou Fai as the new Chief Executive. Fai, the first leader of Macao born in mainland China, pledged to address the territory’s imbalanced economic development since the handover in 1999.
Macao, with a population of 687,000, has evolved from a gambling-centric enclave into the world’s largest gaming destination, attracting throngs of tourists from mainland China. While the casino industry has raised living standards, concerns linger regarding the city’s overreliance on this sector, signaling an urgent need for economic diversification.
President Xi commended Macao’s progress in economic diversification and international influence, urging the city to broaden its global role and attract talent for a brighter future. He stressed the importance of enhancing industrial development planning, policy support, and investment to nurture competitive new industries.
Fai has vowed to expedite initiatives to bolster tourism and other sectors such as Chinese medicine, finance, technology, exhibitions, and commerce. Despite a history of limited political dissent in Macao compared to Hong Kong, authorities have tightened control in recent years following unrest in the region.
Xi underscored the primacy of national sovereignty and development interests, emphasizing the importance of safeguarding autonomy while maintaining security. Macao operates under a distinct system allowing Western-style economic and social practices, with casino gambling being legal only in this Chinese city.
With Beijing’s policy shaping Macao’s trajectory, the city is forging closer economic ties with neighboring Guangdong province, highlighted by the establishment of a special zone on Hengqin Island jointly managed by Guangdong and Macao. Xi emphasized Macao’s active involvement in the Greater Bay Area initiative to strengthen regional integration and economic cooperation.
Hong Kong, along with nine other cities in Guangdong, has formed a formidable economic powerhouse in the region. President Xi Jinping is set to conclude his three-day visit in Macao on Friday. Throughout his time in the city, he made various engagements including a visit to a university, exploring the special zone on Hengqin Island, and meeting with prominent figures such as Macao’s former city leaders and Hong Kong’s Chief Executive, among others.
